Palo Alto Networks and identity security company CyberArk announced on Wednesday that they have entered into a definitive agreement under which Palo Alto Networks will acquire CyberArk. Under the terms of the agreement, CyberArk shareholders will receive $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share. This represents an equity value of approximately $25 billion for CyberArk and a 26% premium to the unaffected 10-day average of the daily VWAPs of CyberArk as of Friday, July 25, 2025.
The combination will mark Palo Alto Networks’ formal entry into Identity Security, establishing it as a core pillar of the company’s multi-platform strategy. Combining CyberArk’s position in identity security and privileged access management (PAM) with Palo Alto Networks’ comprehensive AI-powered security platforms will extend privileged identity protection to all identity types including human, machine, and the new wave of autonomous AI agents.
CyberArk is already establishing itself as an Identity Security platform, and Palo Alto Networks will help accelerate this journey towards platformization to drive better combined security outcomes for customers.
“Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now. This strategy has guided our evolution from a next-gen firewall company into a multi-platform cybersecurity leader,” Nikesh Arora, chairman and CEO of Palo Alto Networks, said in a media statement. “Today, the rise of AI and the explosion of machine identities have made it clear that the future of security must be built on the vision that every identity requires the right level of privilege controls, not the ‘IAM fallacy’. CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era. Together, we will define the next chapter of cybersecurity.”
“This is a profound moment in CyberArk’s journey. From the beginning, we set out to protect the world’s most critical assets, with a relentless focus on innovation, trust, and security,” according to Udi Mokady, founder and executive chairman of CyberArk. “Joining forces with Palo Alto Networks is a powerful next chapter, built on shared values and a deep commitment to solving the toughest identity challenges. Together, we’ll bring unmatched expertise across human and machine identities, privileged access, and AI-driven innovation to secure what’s next. This is more than a combination of technologies—it’s an acceleration of the mission we began over two decades ago. I’m incredibly proud of what our team has built and deeply grateful to everyone who made this milestone possible.”
Identity and security are converging, highlighting the need for a true Identity Security platform. Securing privileged credentials for both human and machine identities, including AI agents and workloads, is the most critical challenge for the modern enterprise.
The integration of CyberArk’s Identity Security Platform with Palo Alto Networks is expected to deliver several important benefits for enterprise security. The combined platform will offer a unified solution that helps close dangerous security gaps and reduce operational complexity. CyberArk’s tools will be integrated into Palo Alto Networks’ Strata and Cortex platforms, using AI to enable identity-aware security and real-time response across the organization.
This collaboration also marks a shift away from traditional identity and access management. It goes beyond basic administrative controls by applying strong, security-first privileged access management principles. These controls will cover every type of identity within the enterprise, whether human users, machines, or autonomous agents.
As more organizations deploy Agentic AI, they are introducing what are effectively privileged users into their environments. Identity Security becomes essential in this context, offering a way to enforce just-in-time access and least privilege principles. These controls ensure that AI agents receive only the permissions they need, only when they need them, providing the oversight required to secure large-scale AI-driven automation.
Once closed, this acquisition will unite two security leaders with similar values, strong cultures, and talented teams. The combination of the two organizations will offer the industry’s most comprehensive and integrated security portfolio, providing customers with a single, trusted vendor for their most critical security needs. The combined companies will become the cyber guardian of our customers, allowing customers to focus on their core business objectives and adopting AI, while we secure their digital future.
Under the terms of the agreement, Palo Alto intends to acquire CyberArk for $45.00 in cash and 2.2005 shares of Palo Alto common stock for each CyberArk share, which represents a 26% premium to the unaffected 10-day average of the daily VWAPs of CyberArk as of Friday, July 25, 20251. The transaction is expected to be immediately accretive to Palo Alto revenue growth and gross margin. Palo Alto also expects the transaction to be accretive to free cash flow per share in fiscal year 2028 following the first full year of realization of synergies.
The transaction has been unanimously approved by the Boards of Directors of both Palo Alto and CyberArk, and is expected to close during the second half of Palo Alto’s fiscal 2026, subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearances and approval by CyberArk shareholders.
“We appreciate the market validation that comes with major moves like this as it reinforces what we’ve known all along: identity security is foundational to modern cybersecurity,” Janine Seebeck, BeyondTrust CEO, wrote in an emailed statement.
“Identity security must be at the core of every modern security strategy. We’ve been leading from the front—through continuous innovation, industry recognition, and analyst validation,” according to Marc Maiffret, BeyondTrust CTO. “The recent move by Palo Alto Networks only reinforces what we’ve long known: identity security is not just a component of cybersecurity—it is cybersecurity.”
